Gifto Token Circulation and Allocation Update

Gifto Official
Aug 14, 2018 · 4 min read

Circulation update

Many of our followers and active participants in the community have been asking about the current state of Gifto’s circulating supply and our plans for managing it going forward.

In short — we currently have about 52% of tokens in circulation, a middle-of-the-road number compared to other relevant projects, even though we have been listed on the world’s best exchanges, which require us to provide significant amounts of tokens for marketing promotions.

Of course, being on top global exchanges, meaning broad access to world-wide users, is in-line with our commitment to ensuring that people have easy access to GTO.

We’d like to take this opportunity to share in more detail where we are today and how we’re looking ahead regarding supply.

Our commitment to token distribution

We completed our ICO and coin lockup in December 2017. At the time, we committed to the following:

  1. 30% ICO: 20% private sale + 10% public sale.
  2. 30% power the ecosystem.
  3. 25% company reserve for future operations.
  4. 15% to advisors, investors, and contributors.

The infographic is pasted here for more detail:

Note: In the ICO we offered a 2% premium to private-sale investors which came from the 15% allocation for advisors/investors/contributors. See this post for more info @1:35 and further explanation below in the “token transfer walkthrough” section.

Where are we today with token distribution and circulation?

As of August 9, 2018 our circulating supply sits at 525,319,169 GTO (52%), up 184,207,711 GTO since March.

Gifto Allocation and Release Status Update

Walkthrough: Token transfers which may increase circulation

There are several kinds of token transfers which may impact circulation. We’ll further explain these below:

Token transfer to partners, including exchanges

We are fortunate to be listed on the world’s best exchanges, and this speaks to the quality and potential of the Gifto project and our good standing within the exchange community. Only a select few altcoins have the opportunity to list on such prestigious exchanges like Binance, Upbit and others.

As part of listing and gaining more exposure to the crypto community, exchanges require a large transfer of tokens, including for marketing promotions. This comes from our allocation bucket for “powering the ecosystem”.

Gifto has been transparent with exchange listings and events. Before deciding to list, we carefully evaluate listings and only proceed if it’s in the best interest of the Gifto community.

For reference, here is the Gifto exchange listing and event calendar:

  • 2/7 OKEX
  • 2/9 Coindesk
  • 2/11 Kyber
  • 2/12 Binance Event
  • 2/27 OTC + BTC
  • 3/9 Cobinhood
  • 3/22 OKEX Event
  • 4/27 Upbit
  • 5/16 Bithumb
  • 5/24 Bittrex
Exchange listing events for Binance and Bithumb, respectively

Release of tokens to an investor/ advisor/ collaborator

There are many partners who have worked with us in the lead-up to, during, and after the ICO to ensure its clear success. This allocation enabled us to ensure aligned interests throughout the process. For example, we added a 2% bonus for private-sale token purchases during the ICO, which based on our research was the lowest bonus offered in the industry and which significantly incentivized large investors to help us have a successful ICO. Release of tokens from this allocation bucket has impacted circulation.

Releasing tokens for private-sale investors

Beginning on December 18, 2017, we unlocked tokens at the rate of 1/6 of the total private token sale each month between December and May. The total private token sales lockups were completely released on May 18, 2018. Including the 2% bonus mentioned above, this means that about 36.6 million GTO were entering circulation each month as lockups expired for private-sale investors.

Token rotation for security purposes

This is a standard practice used by exchanges. This won’t actually impact circulation, unless, as happened recently, Coinmarketcap does not properly track the receiving wallet, where the circulation would temporarily increase until the tracking issue is fixed by Coinmarketcap.

How do we stand against other projects?

Let’s look at our circulation within the context of the industry: When compared to other non-chain tokens listed between November 2017 and January 2018, we have a circulating supply in the middle of the pack, in spite of having listed on the most high-profile exchanges which traditionally require the largest token transfers by the project listing.

Methodology: We searched for non-blockchain ICOs in our cohort as defined by having had their ICO between Nov. 2017 and Feb. 2018. We then plotted their circulating supply as a percent of authorized tokens. Blockchain ICO’s were excluded because as they move their tokens off of Ethereum and only temporarily have very high circulation, affecting the rankings.

Moving forward

We’ll continue to regularly report on circulation and appreciate community feedback on how we can balance transparency with execution and flexibility. Thanks for all in the community who have helped us continuously improve our communications on these topics. Feel free to reach out to us on Telegram with any questions.

We are in another bear market, and we understand everyone’s frustrations. It is natural, when the market is down, to question what we as a project have been up to. We have always been executing towards our vision, regardless of the market conditions. We started our journey into blockchain for the long term, and we will be here with all of you for much more time to come. Thank you again for all your support!

Sources:

https://medium.com/gifto/gifto-weekly-update-13-march-2018-fb92f4405831

https://medium.com/gifto/gifto-token-sale-and-distribution-7ad6a514c617

For the most up-to-date news, follow us on:

https://twitter.com/gifto_io?lang=en

https://www.reddit.com/r/GIFTO/

https://www.linkedin.com/company/giftoprotocol/

https://www.facebook.com/gifto.io/

https://t.me/giftoOfficial

Gifto Official

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